FTXP tax type

[Former Member]

Dear forum,

Assuming I have CST, VAT, Service tax and so on..

In FTXP, the particular tax code has a sequence of tax types.

I notice at the maintain Tax code screen, at the header there is a parameter called tax type. when I F4, only show input tax and output tax.

May I know FTXP or tax on sales and purchases only allowed VAT? what happen to service tax, cst or other kind of tax?

Thanks

[Former Member]

Hi

Yes, there can only be two types of tax types - input and output. Each of the taxes you have mentioned above will be charged either at purchase or at sales, or both. Just like VAT has input and output VAT, CST and service tax will also have input and output CST and service tax respectively. Go ahead and create input CST, service tax and also output CST, service tax under the two tax types provided.

Hope this solves your query.

Regards,

SGP

[Former Member]

Dear forum,

thanks and point assigned.

Here is my doubt.

1 as there are few kind of tax appear in the same tax code, how can we know the individual tax amount go to which kind of tax?

say input tax. if subject to cst and also vat, then there are 2 kind of rate and 2 kind of tax amount in the same tax code. Both also value added to vendor.

2 another thing is those non vat also value add to vendor. say cst, why also value add to vendor?

thanks

rgds

[Former Member]

Hi,

Not sure i understand your concern here. Different rates of VAT (2%, 4%) will have different tax codes. Applicable Input taxes will have to be choosed either at time of MIRO/Invoicing or will be dervied through MM PP. Applicable output taxes will also be dervied through SD pricing for vendor/material comibination.

VAT and CST are exclusive, so user will have to choose VAT or CST during vendor invoicing.

Regards,

SGP

[Former Member]

Dear,

Your last sentence is my concern.

See, in FTXP of a tax code, there is a list of tax type which is according to tax procedure.

Now, in tax code say XX which is input tax, possible to have mixture of cst and vat tax % defined together? Meaning tax code XX has 4% of vat input tax, 2% of cst input tax and the total tax for tax code XX is 6%.

Need your advice.

Thanks

[Former Member]

In this case two different tax codes needs to be created, each for 2% and 4% accordingly. each different rate will have a different tax code and assigned to input or output tax type accordingly.

[Former Member]

Dear Friend,

Taxes can be defined as Input and Output tax.

What ever taxes you are referring falls under this two criteria.

All your taxes on purchases are considered input tax and all your taxes on sales are considered Output tax.

So all your taxes CST,service ta, VAT comes under this category.

Hope this clears your doubts